Government Expenditure: a Catalyst for Economic Growth in Nigeria
Year: 2024
Type: article
Abstract: In the quest to unravel the intricate dynamics shaping Nigeria's economic trajectory, this study delvesinto the relationship between capital expenditure and economic growth over a three-decade period,spanning from 1992 to 2021. The ex-post facto research design was adopted, using historical dataextracted from Central Bank of Nigeria (CBN) statistical bulletins. Augmented Dickey Fuller (ADF)unit root test was carried out to test for the stability of data. Co-integration test was done with Johansenand Engle-Granger methods. Findings showed that, when lagged by one year, government expenditureon education has a positive and insignificant relationship with gross domestic product. Whilegovernment expenditure on healthcare has a positive and significant relationship with the grossdomestic product; government expenditure on transportation has a negative and insignificantrelationship with the gross domestic product; and government expenditure on agriculture has a negativeand significant relationship with the gross domestic product. The study concluded that budgetaryallocation and implementation of expenditure on education, transport, and agriculture were notproperly allocated and utilized to improve the nation’s productive capacity. The study suggested thatthe allocation and execution of budget to the identified critical sectors should be more done carefullyfor accelerated economic growth.
Authors: Alexander Tunde OGUNTUASE, Temitope Esther OYENEYE, Jayeola OLABISI, Oluwapelumi Damilola OYEDELE
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7038324031
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